The Army of the FREE People, as it was called was a guerilla organization formed in 1942 by Jesus Azaraga, using the J0k-de-guerre Captain Juan Villaojada. Assisted by two brothers he built up a force of about 400 Men which operated in the Milagros area.

Rumors that this was a communist group reached Col. Peralta in Panay, using this as a pretext Paralta sent an expedition in 1943 under Jajor Vincente A Tansiongco to wipe out the communists and to take control of Masbate.

This proved to be a more formidable task than anticipated. On January 23,1944 Major Tansiongco arranged a meeting with the Japanese garrison officers and arranged a "TRUCE" whereby they would not molest each other.

This enabled Major Tansiongco to concentrate his entire force against Villaojada guerrillas in February 1944 he succeded. driving the few survivors deep into the mountains. Peralta's control of Masbate, however was short lived.